China steps up bitcoin battle

The Chinese government fears a currency it cannot control and is trying to undermine Bitcoin before it becomes too popular.

Beijing is at war with bitcoin. The digital currency has become so popular with speculators that the Chinese government seems intent on stopping its rise.

Although only one official bitcoin ruling has been issued, which approves some trading by individuals but bans local financial institutions from dealing in it, the government has been working behind the scenes to undermine the industry before it becomes too big to handle.